The procurement contracts include the delivery, via FMS, of 64 F-35A Block 4 multi-role fighters between 2025 and 2030 for approximately €9.4 billion.
Finland’s signing of its F-35 Letter of Offer and Acceptance today is great news for Finland’s national defence and industry thanks to the aircraft’s unmatched operational capabilities combined with opportunities for next-generation industrial cooperation pic.twitter.com/x37s9vc6Zs
— Lockheed Martin Europe (@LMEuropeNews) February 11, 2022
The Ministry of Defense of Finland announced that the Letter of Offer and Acceptance (LOA) documents were signed today between Major General (Eng.) Kari Renko, Chief of the Finnish Defense Forces Logistics Command, and representatives of the F-35 Joint Program Office, on the purchase of F-35A aircraft and their maintenance services.
After signing, the LOA becamed the contract, which includes, in addition to the aircraft themselves, aircraft engines and maintenance equipment, systems, spare parts, replacement equipment, training equipment and services required for their use and maintenance. The agreements include training for the Finnish Defense Forces’ flight and technical personnel.
Following the acquisition of the aircraft and their maintenance services, LOA documents for the procurement of air-to-air weapons to equip the aircraft, such as Sidewinder and AMRAAM missiles, will be signed during this year. According to the procurement proposal submitted to the Government in December 2021, agreements on the procurement of air-to-ground and air-to-surface weapons will be made later. This will ensure that the armament composition can be optimized. For example in terms of the number and types of weapons, so that Finland will have a high-performance F-35 system.
Industrial participation agreement
Defense Minister Antti Kaikkonen also signed an industrial participation agreement in Helsinki today. The agreement was concluded with fighter manufacturer Lockheed Martin and Pratt & Whitney, an engine manufacturer and member of the Raytheon technology group.
At the time of announcing the winner of the HX competition, the Finnish government detailed the reasons for choosing the F-35A Lightning II, among which the industrial participation section was essential for the long-term operation of the new weapon system.
The industrial participation obligation is based on a decision made by the Minister of Defense in April 2018 which stated that the value of industrial cooperation should be at least 30% of the actual contract price. The industrial participation solution on the F-35 system met the HX Fighter program requirements set for industrial participation.
The industrial participation solution will develop credible expertise in Finnish industry from a security of supply perspective. It will also play an important role in the national economy. The most important industrial participation projects include full-scale production of the F-35 forward fuselage in Finland, for in-house aircraft and also for other users, production of structural components, as well as equipment testing and maintenance capabilities.
Finland was also offered a local final engine assembly project for the domestic F-35A. The Government estimates that industrial participation will have a direct national employment impact of 4,500 people and an indirect impact of 1,500 people per year.
